Mandarin Capital Plans $1.4B China Outbound Fund

Mandarin Capital Partners is planning to launch a 1 billion euro ($1.4 billion) fund next year to meet the rising demand for overseas acquisitions by Chinese firms, Reuters reported Friday. The firm launched its first fund in 2007. Mandarin Capital’s first fund, backed by two Chinese policy banks — China Development Bank and the Export-Import Bank of China — and Italy’s Intesa Sanpanlo, will be fully invested by the end of April next year, Reuters wrote.

(Reuters) – Mandarin Capital Partners, a Sino-European private equity firm, plans to launch a 1 billion euro ($1.4 billion) fund next year to meet the rising demand for overseas acquisitions by Chinese firms, a senior executive said on Friday.

The PE firm launched its maiden fund in 2007 to mainly facilitate outbound investment from China, pioneering a model that was followed by some other private equity firms eager to capitalize on Chinese firms’ overseas ambitions.

The new fund, which will be based on the same model, will expand its target base from companies based in Italy and China to those in other European countries as well as the United States, founding partner Alberto Forchielli told Reuters in a telephone interview.

Mandarin Capital’s first fund, backed by two Chinese policy banks — China Development Bank and the Export-Import Bank of China — and Italy’s Intesa Sanpanlo , will be fully invested by the end of April next year, Forchielli said. ($1 = 0.728 Euros) (Reporting by Samuel Shen, David Lin and Kazunori Takada)